Fremont Discusses Agreement with Litton Loan, Says Bankruptcy is Possible
Saturday, May 10, 2008
Brea, California-based Fremont General Corp. (FGC), which issues subprime mortgages through its subsidiary Fremont Investment & Loan, elaborated on its uncertain future Friday.
The company said in a statement that it has entered into two Purchase agreements: One with Litton Loan Servicing, LP, for the company's remaining servicing rights; and one with CapitalSource TRS Inc., for a portion of its assets.
Fremont added that it's currently facing strict regulatory restraints related to the two transactions that must be met; and if those are not handled in a timely fashion, bankruptcy is possible.
In a company update, Fremont said, “FGC publicly disclosed in announcing the CapitalSource transaction that in the event that FGC was not in a position to produce required consolidated information in a timely manner to conduct a proxy solicitation, FGC would likely determine to file a voluntary petition for bankruptcy following receipt of the requisite approvals for the CapitalSource transaction from the Regulatory Authorities.”
Click here to read Fremont's full statement.
The company said in a statement that it has entered into two Purchase agreements: One with Litton Loan Servicing, LP, for the company's remaining servicing rights; and one with CapitalSource TRS Inc., for a portion of its assets.
Fremont added that it's currently facing strict regulatory restraints related to the two transactions that must be met; and if those are not handled in a timely fashion, bankruptcy is possible.
In a company update, Fremont said, “FGC publicly disclosed in announcing the CapitalSource transaction that in the event that FGC was not in a position to produce required consolidated information in a timely manner to conduct a proxy solicitation, FGC would likely determine to file a voluntary petition for bankruptcy following receipt of the requisite approvals for the CapitalSource transaction from the Regulatory Authorities.”
Click here to read Fremont's full statement.
